The Work Modernization Projectas he prefers to call it President Javier Mileidepending on what is contained in it 71 pages The aim is to cover a wide range of topics, ranging from individual rights to collective labor rights, platforms, agricultural work, trade union federations, etc.
In this aspect the Minister for Deregulation and Transformation Federico Rumpfenegger which added some deregulatory aspects to the original project Minister of Human Capital Sandra Pettovello discussed some of the key themes he posted on his X Network account last Friday.
Among these stand out 16 key aspects:
1. Scope: The provisions contained in the Employment Contract Act are presented more clearly.
2. Legal certainty: We are reorganizing the heart of the system. The old principle of “giving the benefit of the doubt” is no longer safe behavior for creative interpretations: now only applies to justified legal doubts, not to any speculation. And we affirm the force of law: what has been agreed and approved is fulfilled and completed. Years later, no further trials were resumed. Predictability for everyone.
3. Solidarity liability between companies: only the user is responsible for what happened while the worker was providing services there, and control obligations when subcontracting are clarified. It ends with the analogous application of collective agreements outside their scope.
4. The definition between salary and non-salary. Tips are no longer a salary for all purposes. To calculate the remuneration, the terms “normal”, “usual” and “monthly” remuneration are used while maintaining the rule 1 salary per yearbut with clear parameters that avoid legal surprises. To avoid another source of judicial surprises, the frequency with which employment law judgments must be updated is established.
The Labor Assistance Fund and Cost Reduction
5. Job creation: By creating jobs, a company can reorganize itself without financial burden. That’s what it’s for FAL (Work Aid Fund). The employer provides a 3% monthly on the salary base, which is financed with a reduction 3 points in his contribution to SIPA. In short, the chainsaw allows reducing labor costs.
6. Agree on labor practices that benefit employees and employers: such as prorated vacation days, more flexible salaries that can be paid in pesos or dollars and electronically.
7. Allow loans to employees with discount codes from banking institutions, which was previously prohibited.
8. Changes in labor court procedures: changes in labor procedures in which, in these procedures, the costs demanded by the experts are no longer proportional to the procedure (which created an incentive to inflate the verdicts) and disabilities must be regulated by a certain standard (to avoid the margin of doubt, which always ended in court proceedings).
9. A new salary receipt: This contains all items paid by the employee and the employer.
10. The end of ultraactivity: This applies to expired contracts, as the working conditions clauses remain in force until the new contract is concluded Mandatory clauses expire automatically and needs to be renegotiated. Again, Companies are no longer the required withholding taxpayers under these mandatory clauses.. Contributions to chambers may not be mandatory in any context.
11. The classification of unfair practices: Blockades of factories, damage to businesses, threats against employers and employees will result in severe real sanctions, and in extreme cases even the loss of legal status.
12. Redefining essential services: So that society is not held hostage by them when declaring essential services public education and public transportation.
Priority of agreements and new working documents
13. Priority: Corporate, provincial and regional agreements may be given priority over national agreements, as it makes no sense to apply an agreement designed for the AMBA equally in regional economies with a different cost and productivity structure. It is a real federalization of work.
14. Facilitating the development of corporate unions so that priority is effective. In other words, The union representation moves closer to the employee.
15. The creation of a digital work file in ARCA This replaces books and categories and moves everything into a single, modern and comprehensible system. What is entered there applies to all organizations: the administrative burden is simplified and the pilgrimage of unnecessary procedures ends. This also includes registration in the construction sector, which avoids double registration with IERIC (which continues to carry out its inspection tasks).
16. The creation of Basic Labor Training Program (PFL) for those who need to acquire the minimum knowledge to participate in the formal market.
Labor reform: profound changes that will transform employment
The four pillars of work modernization
According to the original project by Milei and Pettovello contained in the Basic Law, this new one Work Modernization Act based on 4 cornerstones: more formal work, less litigation, more predictability and less strain on the employment relationship, without compromising, as they would have us believe, basic workers’ rights such as pay, bonuses, vacation or an 8-hour day.
From Human Capital they point out that: “The project could be grouped around four pillars: the job creation pillar, the wage increase pillar, the labor litigation reduction pillar and the labor and production tax cost reduction pillar.”.
In the employment sector, the aim is partly to modernize working conditions by renewing collective agreements more than 50 years. This is the so-called decline in ultraactivity.
There is also a change in the priority of the agreements, as the lower agreement – if any – takes precedence over the higher one.
“This would be a kind of federalization of salary negotiations, now possible for those workers who believe that a more general agreement does not take into account the specificities of their company or region. To this end, the creation of company unions will be facilitated, which aims to bring the negotiation closer to the direct stakeholders, who are none other than the employees of each company. At the same time, the tax burden on new jobs will be reduced and a process of worker laundering will be facilitated. Finally, a more suitable framework will be created for platform workers who work in today a legal uncertainty framework” They explain from human capital.
They also add that there will be an improvement in salary as the tax burden will be reduced Labor Assistance Fund (FAL)A previous austerity system funded by a reduction in pension contributions will reduce OOSS fees and labor costs for new jobs. For the latter, reducing tax costs is of great importance. The decline in ultraactivity also forces the agreement to review the other points and pressures that weigh on the employment relationship.
They also point out that this is new Work Modernization Act The number of legal disputes will be reduced as, on the one hand, the transfer of national labor jurisdiction to the city is initiated and, on the other hand, a number of changes are implemented in the Labor Contract Law aimed at giving the employee more flexibility and avoiding legal surprises for the employer, as well as the introduction of the Labor Assistance Fund (FAL).
On the other hand, they explain the following: “When employers hire workers, tax costs are reduced. This is based on the fact that the project includes a number of tax improvements that improve the economic equation of production. In addition to the already mentioned reduction in labor costs, corporate tax is reduced and tax losses can be updated. An incentive program for medium investments, which includes accelerated payback and VAT refund, is also included.”.
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